Tech incubator set to open in East Lansing
BYLINE: Jeremy W. Steele Contact Jeremy W. Steele at 377-1015 or jwsteele@lsj.com
Lansing State Journal
EAST LANSING - New high-tech companies should be able by late spring to lease office space across the street from Michigan State University at a subsidized rate, city officials said Monday.
The East Lansing Technology Incubator, an offshoot of the Lansing Regional SmartZone, will take up at least 7,000 square feet on the top floor of the former Jacobson's department store at Grand River Avenue and Charles Street.
$250{},000 in spending
The city's Downtown Development Authority plans to spend $250,000 to build out the space, which it then will sublease to new companies at a reduced rate.
"One of the many challenges of these businesses is finding appropriate, low-cost buildings," East Lansing Mayor Sam Singh said.
Companies can take a single desk or up to several thousand square feet, officials said. They'll pay an average of $11.50 per square foot, based on the stage of the business.
Similar Class A office space leases for about $18 per square foot to $19 per square foot. Tenants will share reception space and conference rooms.
They'll also have access to some services, such as business planning, legal advice and marketing, East Lansing City Manager Ted Staton said.
The city has two companies interested in the incubator space and another possible tenant that could offer support services to them, he said without naming the firms.
{}University effort
The incubator space piggybacks on a university effort to help faculty find financing and space for their new companies, said Ian Gray, MSU's vice president for research and graduate studies.
"We've got a number of opportunities," Gray said. "The whole goal is to provide our faculty with chances of success. If we can make our faculty succeed, the university succeeds and through that we make our neighboring region successful at the same time."
Startup companies also may benefit from further development of the University Corporate Research Park in Lansing. The office park along MSU's southwestern edge also is part of the SmartZone, a state program that aims to help build clusters of high-tech companies.
$2{} million grant
Officials earlier this year announced a $2 million federal grant, which will be matched by the MSU Foundation, to prepare more of the park for development.
Planning is under way for up to four new buildings, including one with wet lab space, said Karl Dorshimer, vice president of the Lansing Economic Development Corp.
Okemos software maker TechSmith Corp. also is planning a new headquarters in the park.
Dorshimer said hopes are the company will start construction in spring 2008.
Contact Jeremy W. Steele at 377-1015 or jwsteele@lsj.com
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* City officials will have a meeting at 4 p.m. Nov. 19 for companies interested in the space. For details, call city special project manager Lori Mullins at 319-6930.